Question

QUESTION 15

What is the appropriate tax treatment for the following expenditure of the the Vick family in 2018:  

Loss on the sale of the family car.

	a.	Not deductible (as neither a “for AGI” deduction nor a “from AGI” deduction)
	b.	Deductible in 2018 as a “from AGI”, subject to the threshold of 10% of adjusted gross income.
	c.	Deductible in 2018 as a “from AGI” and not subject to a threshold (other than the comparison to the standard deduction)
	d.	Deductible in 2018 as a “from AGI”, subject to the limitation of 60% of adjusted gross income.
	e.	Deductible in 2018 as a “from AGI”, subject to a collective $10,000 limit (with other similar items).

QUESTION 16

What is the appropriate tax treatment for the following expenditure of the the Vick family in 2018:  

The Vick’s health insurance premiums for health plan coverage through Mrs. Vick’s employer’s cafeteria plan. Premiums are withheld on Mrs. Vick’s pay on a pre-tax basis.

	a.	Not deductible (as neither a “for AGI” deduction nor a “from AGI” deduction)
	b.	Deductible in 2018 as a “from AGI”, subject to the threshold of 10% of adjusted gross income.
	c.	Deductible in 2018 as a “from AGI” and not subject to a threshold (other than the comparison to the standard deduction)
	d.	Deductible in 2018 as a “from AGI”, subject to the limitation of 60% of adjusted gross income.
	e.	Deductible in 2018 as a “from AGI”, subject to a collective $10,000 limit (with other similar items).

QUESTION 17

A scholarship recipient at State University may exclude from gross income the scholarship proceeds used to pay for:

	a.	Only tuition and fees.
	b.	Only tuition and fees, books, and supplies.
	c.	Only tuition and fees, books, supplies, meals, and lodging.
	d.	Only meals and lodging

QUESTION 18

1. Early in the year, Marlon was in an automobile accident during the course of his employment. As a result of the physical injuries he sustained, he received the following payments during the year:
   • Reimbursement of medical expenses Marlon paid by a medical insurance policy he purchased  $10,000
   • Damage settlement to replace his lost salary $15,000

What is the amount that Marlon must include in gross income for the current year?

	a.	$25,000.
	b.	$15,000.
	c.	$10,000.
	d.	$0.

  

QUESTION 19

Which of the following, if any, correctly describes the earned income credit?

		Would be available regardless of the amount of the taxpayer’s adjusted gross income.
		Would be available regardless of the age of the taxpayer(s).
		Requires a taxpayer to have a qualifying child to take advantage of the credit.
		Is a refundable credit.

Answer 1

QUESTION 15

.	Not deductible (as neither a “for AGI” deduction nor a “from AGI” deduction)

QUESTION 16

c.	Deductible in 2018 as a “from AGI” and not subject to a threshold (other than the comparison to the standard deduction

QUESTION 17

b.	Only tuition and fees, books, and supplies.

QUESTION 18

d.

$0.

QUESTION 19

Is a refundable credit.

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